NSC calculation help

Kushal Pande (CFO) (256 Points)

16 June 2017  

NSCs Details Example:

Principal : Rs. 60,000
Purchased on : 3-Feb-2016 (FY 2015-2016)
Maturity Date : 3-Feb-2021 (FY 2020-2021)
Interest Rate : 8.50%
Term : 5 years
Compounding Frequency : Half-Yearly

 
 

Calculation for getting the accrued interest for each FY, to be added to "Income from Other Sources" :

TABLE A :

Year FY FY
Interest		 Total
Interest		 Balance
1 FY 2015-2016 5,208.38 5,208.38 65,208.38
2 FY 2016-2017 5,660.49 10,868.87 70,868.87
3 FY 2017-2018 6,151.86 17,020.73 77,020.73
4 FY 2018-2019 6,685.88 23,706.61 83,706.61
5 FY 2019-2020 7,266.26 30,972.87 90,972.87

 
 

TABLE B :

Year FY FY
Interest		 Total
Interest		 Balance
1 FY 2016-2017 5,208.38 5,208.38 65,208.38
2 FY 2017-2018 5,660.49 10,868.87 70,868.87
3 FY 2018-2019 6,151.86 17,020.73 77,020.73
4 FY 2019-2020 6,685.88 23,706.61 83,706.61
5 FY 2020-2021 7,266.26 30,972.87 90,972.87

 
 

Which one is correct Table A or Table B?

What does Year 1 above signify? Is it the FY the NSCs are bought or the subsequent FY?